Walmart builds momentum as Q4 revenue hits $180.6 billion

For the full year, the company’s revenue reached $681 billion, a growth of 5.1 per cent. (Source: Supplied)

By Kaycee Enerva February 21, 2025

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Walmart has posted another strong quarter, which president and CEO Doug McMillon attributed to increased e-commerce sales and improved profit margins.

“We are experiencing momentum thanks to our low prices, a growing product assortment, and an e-commerce business that benefits from faster delivery times,” he continued.

The company’s fourth-quarter revenue amounted to $180.6 billion, marking a 4.1 per cent increase. Globally, e-commerce grew 16 per cent with penetration up across all segments.

Operating income jumped by $600 million, an increase of 8.3 per cent, supported by higher gross margins and growth in membership income.

Meanwhile, Its advertising business performed well, expanding by 29 per cent, with Walmart Connect in the US increasing by 24 per cent.

For the full year, the company’s revenue reached $681 billion, a growth of 5.1 per cent, while operating income rose by $2.3 billion, an 8.6 per cent increase. Global advertising business generated $4.4 billion, reflecting a 27 per cent increase from the previous year.

Looking ahead to fiscal year 2026, Walmart expects net sales to grow between three and four per cent, with adjusted operating income increasing between 3.5 and 5.5 per cent in constant currency.

These projections consider a 150 basis point impact from the recent acquisition of Vizio Holdings Corp and the absence of an extra leap-year day.

“We’re gaining market share, our top line is strong, and our inventory levels are healthy,” McMillon added.

“We will remain focused on growth, improving operating margins, and strengthening return on investment as we invest in better serving our customers and members.”

GlobalData MD Neil Saunders said one of the more impressive lessons Walmart has learned and implemented is that it can use its firepower in retail to grow non-retail parts of the business.

“While these are pages that Walmart has borrowed from Amazon’s playbook, they are, nevertheless, strategies that it is putting to good use to boost sales and profits,” he added. “The outlook for Walmart remains solid.”